Magical Trade
Monday, June 27, 2022
  • Home
  • Trade News
  • Email Whitelisting
  • Privacy Policy
No Result
View All Result
  • Home
  • Trade News
  • Email Whitelisting
  • Privacy Policy
No Result
View All Result
Magical Trade
No Result
View All Result
Home Trade News

Factory shutdowns in Vietnam could have longer impact for apparel and footwear retailers, BofA warns

by
November 15, 2021
in Trade News
0
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter

RELATED POSTS

Man in custody after Rudy Giuliani was ‘slapped’ in the back, police say

Fund manager names one trend that will ‘affect all industries’ — and reveals how he’s trading it

Nike shoes are displayed at a shoe store on September 27, 2021 in Novato, California.

Justin Sullivan | Getty Images

The impact of prolonged factory shutdowns in Vietnam is likely going to be worse than many apparel and footwear retailers have planned for, lasting well into 2022, according to analysts at BofA Securities.

The Wall Street research firm said in a note to clients over the weekend that the recovery in Vietnam will be more gradual than retailers are anticipating, and that businesses are being too optimistic about turnaround times.

BofA cited a number of reasons for its predictions, including the fact that the reopening of the economy in southern Vietnam — where many apparel and footwear producers are housed — has been moving much slower than in the north.

Vietnam experienced a devastating surge in Covid cases this past July through August, prompting another round of local lockdowns. The temporary pause to production dealt a blow to companies such as Adidas and Nike, which rely heavily on the region for manufacturing their sneakers and athletic apparel. Businesses have since started to reopen, but vaccination rates remain significantly lower compared with other countries, BofA noted.

“While production activities indeed recovered fast last year after the brief Covid-related disruption, production is likely to take longer to normalize this time around – perhaps as long as 6 months,” said BofA economist Mohamed Faiz Nagutha.

He added that current factory operation rules in Vietnam remain strict and very complicated, which could hinder employees’ ability to return to work.

“All in, we expect several headwinds to weigh on the expectations for a fast resumption in production activities – including the likely persistence of labor shortages … but also due to rising raw materials costs and supply chain disruptions in many other parts of Asia,” Nagutha said.

Puma has already warned that supply chain bottlenecks, particular in Vietnam, will entail a shortage of its products far into next year. Last week, Adidas trimmed its 2021 outlook due to sourcing disruptions.

The topic will likely come up on a number of conference calls this week, as a round of retailers are set to report quarterly earnings. That list includes department store chains Kohl’s and Macy’s, big-box chains Walmart and Target, as well as mall staples Victoria’s Secret and Foot Locker.

— CNBC’s Michael Bloom contributed to this report.

ShareTweetPin

Related Posts

Man in custody after Rudy Giuliani was ‘slapped’ in the back, police say

by
June 27, 2022
0

A man was taken into custody Sunday after he was alleged to have slapped former New York Mayor Rudy Giuliani...

Fund manager names one trend that will ‘affect all industries’ — and reveals how he’s trading it

by
June 27, 2022
0

For decades, globalization has been an established part of the global economic system, but fund manager Dan Katz believes its...

These global stocks look oversold — and analysts are expecting a rebound

by
June 27, 2022
0

Market watchers have been reluctant to call the bottom on the sell-off in global stocks this year, but some assets...

Asia-Pacific markets gain as investors monitor recession fears

by
June 27, 2022
0

A man walks past the Tokyo Stock Exchange (TSE), operated by Japan Exchange Group Inc. (JPX), in Tokyo, Japan, on...

Russia Defaults on Foreign Debt for First Time Since 1918

by
June 27, 2022
0

Associated Press EXPLAINER: What's the impact of a Russian debt default? Russia is poised to default on its foreign debt...

Next Post

Morgan Stanley: These 3 “Strong Buy” Stocks Could Surge at Least 60%

Resist buying U.S. stocks and Treasurys, Morgan Stanley advises. Here’s what their strategists recommend buying instead.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

email

Get the daily email about stock.

Please Enter Your Email Address:



By opting in you agree to our Privacy Policy. You also agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

MOST VIEWED

  • Forget Tesla — this auto stock is the one to buy right now, analyst says

    0 shares
    Share 0 Tweet 0
  • Fund manager believes FAANG is dead — says now it’s all about MANTA

    0 shares
    Share 0 Tweet 0
  • Bank of America names its top global tech stocks — including one it says has upside of 100%

    0 shares
    Share 0 Tweet 0
  • ‘Conviction sell’: UBS says avoid these global stocks amid rising headwinds

    0 shares
    Share 0 Tweet 0
  • These are the global stocks to own if stagflation hits, according to Credit Suisse

    0 shares
    Share 0 Tweet 0
  • Home
  • Trade News
  • Email Whitelisting
  • Privacy Policy
All rights reserved by www.magicaltrade.net
No Result
View All Result
  • Email Whitelisting
  • Home
  • Privacy Policy

All rights reserved by www.magicaltrade.net